Glan Conwy residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Glan Conwy lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Lucas owned a high value flat in Glan Conwy on the market with a lease of fraction over 59 years outstanding. Lucas informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Lucas to invoke his statutory right. Lucas procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
In 2010 we were e-mailed by Mr I Torres who, having owned a one bedroom apartment in Glan Conwy in November 2009. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable homes in Glan Conwy with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 billed monthly. The lease ran out in 2083. Having 59 years left we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus costs.
In 2011 we were e-mailed by Ms K Johnson who, having moved into a newly refurbished apartment in Glan Conwy in May 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Glan Conwy with an extended lease were in the region of £255,000. The average ground rent payable was £50 collected per annum. The lease terminated in 2094. Having 70 years outstanding we calculated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 plus professional charges.